FINANCIAL MANAGEMENT

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FINANCIAL MANAGEMENT by Mind Map: FINANCIAL MANAGEMENT

1. Objective

1.1. Profit Maximization

1.2. Wealth Maximization

1.3. Survival of the company

1.4. Maintain Cash Flow

1.5. Minimizing Capital Cost

2. Definition

2.1. James Van Horne

2.1.1. Planning is an inextricable dimension of financial management

2.2. Deepika And Maya Rani

2.2.1. Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm's financial resources

2.3. Joseph Massie

2.3.1. Financial Management is the Operational Activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation

2.4. Kuldepp Roy

2.4.1. Business finance deals primarily with rising administering and disbursing funds by privately owned business units operating in non-financial fields of industry

2.5. Weston and Brigham

2.5.1. Financial Management is an area of financial decision making, harmonizing individual motives and enterprise goals

3. Scope Of Financial Management

3.1. Estimating The Requirement of Funds

3.2. Determining the Capital Structure

3.3. Investment Funds

4. Branch of Financial Management

4.1. Managerial Finance

4.1.1. Role Of Managerial Accounting

4.1.1.1. Interpret Financial Result

4.1.1.2. Activity Based Costing

4.1.1.3. Variable Budgeting

4.2. Corporate Finance

4.2.1. Role Of Corporate Finance

4.2.1.1. Capital Structure

4.2.1.1.1. Sources Of Capital

4.3. Financial Management For IT Services

4.3.1. Goals

4.3.1.1. Provide Cost Effective Stewardship

4.3.2. Sub Process

4.3.2.1. Budgeting

4.3.2.2. IT Accounting

4.3.2.3. Charging

5. Means

5.1. Organizing

5.2. Directing

5.3. Controlling

6. Importance of Financial Management

6.1. Adequate Funds Have To Be Ensured

6.2. helps in ensuring a reasonable balance between outflow and inflow of funds

6.3. ensures that the suppliers of funds are easily investing in companies

6.4. helps in making growth and expansion programmes

6.5. reduces uncertainties with regards to changing market trends

6.6. helps in reducing the uncertainties which can be a hindrance to growth of the company

7. Benefits Of Good Financial Management

7.1. make effective and efficient use of resources

7.2. achieve objectives and fulfil commitments to stakeholders

7.3. become more accountable to donors and other stakeholders

7.4. gain the respect and confidence of funding agencies, partners and beneficiaries

7.5. gain advantage in competition for increasingly scarce resources

7.6. prepare for long-term financial sustainability.

8. What Makes Goods Financial Management

8.1. Clear Finance Strategy

8.2. Plan For Generating Income

8.3. Robust Financial Managerial System

8.4. Suitable Internal Environment

9. Guiding principles for financial management systems

9.1. Consistency

9.2. Accountability

9.3. Transparency

9.4. Integrity

9.5. Financial Stewardship

9.6. Accounting Standards